Catellus alleges Lennar used unfair lobbying practices in attempt to win $6B Bay Area project
- After receiving claims of improper lobbying, the Concord City Council in California. canceled a vote to decide between two rival companies over rights to develop a $6 billion Bay Area mixed-use project at the site of a former naval base.
- In a letter to the city manager, Catellus Development Corp. wrote that in violation of an agreement not to lobby, Lennar Urban tried to cultivate favor through backroom meetings with city officials.
- Catellus had concerns about relationships between Lennar's president and the former mayor of San Francisco, who has ties to funding for the project and donations from Lennar to Concord's mayor ."We know their consultants, some of which are out of state, donated to the mayor's campaign," said Ted Antenucci, CEO of Catellus. Lennar has denied any wrongdoing.
Dive Insight:
While there are connections between Lennar and people influential to the deal, the difficulty comes in proving that unethical behavior took place. The city said it may investigate the allegations.
"Lennar has not engaged in any discussions, negotiations, or lobbying prohibited under its agreement with the city, and has prohibited its consultants from doing so," Lennar Urban President Kofi Bonner said in a statement. "Lennar has full confidence that the city has engaged in a fair and thorough process. We are sorry to see that Catellus has chosen to smear the city of Concord in an apparent last-minute desperate act aimed at sabotaging the selection process."
Catellus said it did not want to launch legal action, but wanted to make sure the entire process is fair to all parties.
The nine-year development project includes more than 6 million square feet of commercial space and is zoned for up to 12,000 housing units.
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